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An opportunity to break into the US organic market

US Costco's decision to open a store in Auckland, New Zealand provides an opportunity for New Zealand organic fruit producers, especially kiwis, to enter the US market using the American giant's distribution network.

This is the view of rePlant Capital, a US-based company that funds US farmers in their conversion to organic production. Costco is the largest distributor of organic products in the United States. The US market is the largest organic market in the world, but with only 1% of farmland dedicated to organic production, there is a gap between demand and supply, which represents an opportunity for foreign products.

But to supply the US market, New Zealand must adopt organic standards for export. New Zealand is one of the few countries in the top 25 organic markets that does not have national standards. According to ministerial sources, a law is being drafted and should be submitted in the second half of the year.